Why digital currencies? Isn’t money already digital?

#5minF – 5-Minute-Friday

The principle of the “5-Minute-Friday” is probably known to many by now. This concept also fits perfectly for the popular podcast model. Every Friday Alex Bechtel, Jonas Gross and Michael Blaschke try to explain a question of the Bitcoin & Crypto community a little bit more in 5 minutes and briefly and crisply address the desired topic.

What is actually so special about digital currencies? Hasn’t our money already gone digital? After all, only around 10% of the M2 money supply consists of physical cash. The rest is already in digital form in accounts with banks and payment service providers. So what distinguishes digital currencies from book money in bank accounts?

Alexander Bechtel answers that question in today’s 5-min Friday episode. He presents his definition of digital money, highlighting two features in particular: tokenization and distributed ledger technology (DLT). According to Alexander, the combination of tokens and DLT makes all the difference. The token ensures that the money itself, and not just the payment, is digitized.

DLT ensures that no intermediary is required for a transfer of the token. Thus, digital money can be transferred peer-to-peer, i.e. from person to person. Until now, this was only possible in the form of physical money. Now if that was too fast for you, feel free to listen in on today’s 5-min Friday episode on digital money.

BigTech goes Digital Currencies - now Amazon too?

Bitcoin, digital euro or cryptocurrencies: The future of money is being rewritten right now. With the Crypto Corner, we provide a point of orientation for those interested in crypto without getting caught up in hype. Alexander Bechtel and his colleagues from Bitcoin, Fiat & Rock’n’Roll regularly bring useful and interesting content about digital currencies and especially the digital euro here.

If you would like to sponsor this podcast or our crypto section, feel free to contact us at [email protected].

Autor
Nicole Nitsche
Nicole Nitsche ist studierte Theaterwissenschaftlerin und hat mehrere Jahre als Regieassistentin beim Thalia Theater Hamburg gearbeitet. Danach war Nicole Leiterin der Presse-und Marketingabteilung eines Hamburger Musiklabels. Zu ihren täglichen Aufgaben zählten dort, neben dem Verfassen von Pressetexten, die Umsetzung und... mehr
Tags